Business

5 important things happening in South Africa today

Staff Writer

 ·23 Feb 2023

Here’s what is happening in and affecting South Africa today:

• Healthy budget: Health Minister Joe Phaahla welcomes the budget of R23 billion for the Health Department over the next three years, which will be in addition to the current baseline allocation, as it will address infrastructure and equipment issues at public healthcare facilities. Phaahla said that the department had faced several years of budget cuts, and the new funding will help address several key areas, such as a 488-bed Limpopo central hospital that will begin construction next month. [City Press]

• SOEs face stricter conditions: Finance Minister Enoch Godongwana says State-owned enterprises (SOEs) continue to rely on government bailouts and are a drag on the national fiscus. Speaking at the Budget speech, the minister said that the government is working on a new framework for managing bailouts, which will be published in March for consultation and then sent to Cabinet. He said that public entities will have to operate as profit-generating enterprises that borrow on the solidity of their balance sheets. [City Press]

• Military test with Russia: The South African National Defence Force defends the joint naval operation with Russia and China, which began yesterday – the anniversary of Russia’s invasion of Ukraine. The SANDF said that the government guides the army and needs to learn skills from other militaries to protect South Africans. Despite previous speculation, Russia said that it would not test the “unstoppable” Zircon missile during the exercise. [EWN, Reuters]

• New Premier in the Free State: ANC secretary-general Fikile Mbalula says the newly elected Free State chairperson Mxolisi Dukwana is the preferred premier candidate for the Free State. It remains unclear when a vote for the new Premier will occur, with the Free State’s State of the Province Address being scheduled for next week. Former Premier Sisi Ntombela resigned as Premier earlier this week. [News24]

• Markets: Investors were mostly positive about the South African government’s plan to take on more than half of Eskom’s debt over the next three years, viewing it as a path back to sustainability for the troubled state utility. The government plans to take on R254 billion ($14 billion) of Eskom’s R423 billion debt, which the National Treasury said was at risk of default. On Thursday (23 February), the rand was trading at R18.20/$, R19.33/€, and R21.95/£. Brent crude is trading at $80.93 a barrel. [Nasdaq]